Novo Nordisk鈥檚 decision to significantly reduce the price of blockbuster drug semaglutide is expected to slow the shift of patients to cheaper alternatives, as the drugmaker battles a declining market share in the weight loss treatment landscape.
In March 2025, Novo slashed the price of weight loss drug Wegovy (semaglutide) in the US to $499 per month, a hefty discount from the list price of $1,349. The Danish big pharma company then followed this up with an identical discount applied to type 2 diabetes (T2D) treatment Ozempic (semaglutide) in August.
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GlobalData strategic intelligence analyst Gaffar Aga comments: 鈥淩educing prices can help protect leadership positions for the companies. Furthermore, while cutting prices may reduce profits in the short term, it also puts pressure on rival companies for the overall pricing structure of the market. As a result, Novo Nordisk may aim to focus on volume-driven growth to meet rising global demand.鈥�
The strategy was in response to a declining market share as patients turned to cheaper alternatives such as compounded semaglutide, a shift exacerbated by a shortage of Ozempic that lasted for around three years in the US. Compounded drugs are custom-made and unbranded medications that contain the same active ingredient as a marketed drug and are usually far cheaper than their branded counterpart.
Market competition was also ramped up with the approval of Eli Lilly鈥檚 tirzepatide, known under the US brand names Mounjaro and Zepbound for T2D and weight loss treatment, respectively. All evidence suggests that Eli Lilly is notching ahead of Novo in the injectable glucagon-like peptide-1 receptor agonists (GLP-1RA).
However, the discounts imposed by Novo on its flagship medications could stem the flow of patients to alternatives, as per the analysis by GlobalData.
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By GlobalDataGlobalData is the parent company of Pharmaceutical Technology.
The cost changes come amid an overhaul to the prescription medicine pricing model in the US. President Donald Trump has made it his ambition to lower the price of drugs in line with other developed countries, as per his 鈥淢ost Favored Nation鈥� model. The model is especially pertinent with weight loss drugs, given their soaring popularity in the US.
Eli Lilly made a similar move with tirzepatide, cutting its price through online pharmacy LillyDirect in March 2025. Novo discounted its products through its online pharmacy, NovoCare.
However, a caveat is that the discounts only apply to cash-paying patients in the US. GlobalData analysts, therefore, say that the real impacts of the price cuts will be how the industry moves forward as a whole, with individual companies aiming to be at the forefront of competitiveness.
GlobalData strategic intelligence analyst George El-Helou comments: 鈥淒espite Novo Nordisk substantially reducing the price of Ozempic to $499 per month, only a small proportion of consumers are non-insured. The majority are covered under health insurance and receive treatment for $25 or less. The real impact of this cut will be seen through the different adjustments rival companies trigger to remain competitive within this market.鈥�
